Framework for effective arbitration practices in road construction projects in Sri Lanka

Abstract

With the introduction of significant road construction projects, Sri Lanka's infrastructure sector is developing quickly. This development primarily results in unfavourable circumstances for projects that build roads. Therefore, given the Sri Lankan environment, problems are bound to arise in constructing these roads. As a result, rather than resorting to litigation to settle their differences, the parties adopted alternative dispute resolution (ADR) techniques. The most popular ADR technique in this sector is arbitration, which occurs outside a courtroom. Thus, preparing for arbitration beforehand would save money and time. It has acknowledged that the arbitration practises used in Sri Lankan Road construction projects have benefits and drawbacks. Therefore, there is a need to study the efficiency of arbitration practices in Sri Lankan Road construction projects. However, while there is a wealth of material on the general topic of resolving construction conflicts, more literature needs explicitly to address disputes in Sri Lankan Road construction projects as a result of earlier studies. Therefore, this study intends to close the research gap by creating a framework for using arbitration efficiently in Sri Lankan Road construction projects. A questionnaire survey of 55 specialists followed a detailed literature study. Subsequently, semi-structured interviews have carried out with eight professionals from the industry who possessed prior experience in executing road construction projects in Sri Lanka and had participated in arbitration proceedings. The data that have collected were subjected to manual content analysis. Even though arbitration is a valuable tool for resolving disputes in road construction projects, the research found that most construction professionals in Sri Lanka needed more satisfaction with the country's current arbitration practices. Accordingly, 17 significant issues have been found, which impacted not only the contractor but also the client and consultant. The research also included mitigation plans for the issues already mentioned. The strategies that were identified encompassed the incorporation of qualified arbitrators and the engagement of construction industry experts as arbitrators, holding the arbitration on a full-day basis, using inexpensive conference rooms, changing the attitude of the arbitrators, founding the Society for Construction Arbitrators or any other comparable authorised institute, modifying the arbitration clause following the project characteristics, and implementing awareness campaigns. In light of this, a framework was created after mapping the issues against the solutions. It combines all the empirical data. The findings of this study allowed us to grasp the significance of the current arbitration better practice and to recommend ways to make improvements in the Sri Lankan Road building business.